As of 2011[update]census of India, Palasa had a population of 57,507 with 25,000 households. The total population constitute, 45,500 males and 30,000 females —a sex ratio of 1044 females per 1000 males. 5,609 children are in the age group of 0–6 years, of which 2,887 are boys and 2,722 are girls —a ratio of 943 girls per 1000 boys. The average literacy rate stands at 75.68% with 39,276 literates, significantly higher than the state average of 67.41%.[2][7]

There are more than 350 cashew processing industries around Palasa, the highest amongst the northern coastal districts. These twin cities are the largest cashew producing towns of Andhra Pradesh and are among the largest processing centres in India. The cashew industry provides direct and indirect employment to about 15,000 people in the surrounding areas.[8][9]

The primary and secondary school education is imparted by government, aided and private schools, under the School Education Department of the state.[12][13] The medium of instruction followed by different schools are English, Telugu.